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Administration
Officials Provide
Details on Federal Stimulus Monies
Members of Governor de Jongh's Administration today provided an initial
overview of how monies that the Territory will receive
from the American Recovery and Reinvestment Act of 2009
(ARRA) will be expended. Through a presentation to the
28th Legislature, the de Jongh Administration team laid
out the current planning and implementation processes
that have been put in place as the preliminary funding
from the ARRA has begun to flow into the Territory.
Senior Policy Advisor to
the Governor Nathan Simmonds and Director of the Bureau
of Economic Research Lauritz Mills presented an overview
of the economic benefits the Virgin Islands will receive
over the next two years under the stimulus legislation.
Simmonds told the Senate that the territory will receive
about $248 million to rebuild our transportation
infrastructure, modernize and repair our schools,
improve our environment, strengthen our law enforcement
capabilities, increase energy efficiency and cut utility
costs, enhance the quality of our education and health
systems and provide needed services to the unemployed
and those persons who have been hardest hit by the
economic storm.
Simmonds also testified that the ARRA
has the potential to provide up to $67 million in fiscal
stabilization funding for our local government. These
funds can be used for school modernization and repairs,
improvements in our education programs, as well as for
other important government services and programs.
Governor John de Jongh last week joined with territorial
governors in writing to President Obama requesting that
the Secretary of Education, who is charged with working
with the Interior Secretary in administering the funds
under the act, to exercise their discretion and provide
greater flexibility for all territories in the use of
the stabilization funds which are intended to provide
fiscal relief to avoid budget cuts to education and
other essential public service as a result of declining
revenues.
The stimulus Act also provides tax relief to
the working families in the Virgin Islands. As a direct
result of the Governor’s efforts in Washington, the
federal government will pay for the cost of a $400 tax
credit for individuals and $800 for couples filing
jointly. Most taxpayers will see a decrease in their
withholding, giving working families more disposable
income.
Mills testified that the
Bureau of Economic Research assumes about $50 million in
the form of tax relief, $32.8 million in transfers or
income support to individuals, and $32.1 million for
infrastructure spending, for a total of $114.9 million.
“These categories…tend to have a relatively large
effect on output or gross territorial product and
employment.” Our analysis projects that approximately
$115 million in stimulus spending will generate a
cumulative impact on economic output of about $155
million over two years, Mills testified. A total of
1,170 jobs will be created over two years. “Whatever
policy decisions we make over the next several weeks
will determine whether our economy continues to slide
and whether people will lose their jobs.”
Additionally, there were
several other officials from within the Administration
who were on hand to provide further background about the
ARRA and answer any questions from Senators related to
the implementation of the ARRA funding.
Also in attendance at
the hearing from the de Jongh team were: Human Services
Commissioner Chris Finch; Attorney General Vincent
Frazer; Police Commissioner James Mc Call; Planning and
Natural Resources Commissioner Robert S. Mathes; Labor
Commissioner Albert Bryan; Education Commissioner
LaVerne Terry; Public Works Commissioner Darryl Smalls;
Acting Health Commissioner Julia Sheen; Internal Revenue
Director Gizette Canegata-Thomas; Budget Director Debra
Gottlieb; Finance Commissioner Claudette
Watson-Anderson; Property and Procurement Commissioner
Lynn Millin-Maduro; PFA Director of Administration and
Finance Julito A. Francis who has also been tapped to
lead the Office of Economic Opportunity; LEPC Director
Meredith Nielsen; Energy Office Director Bevan Smith;
Housing Finance Authority Director Clifford Graham and
Peter N. Hiebert of Winston and Strawn, the
Government’s Counsel in Washington, D.C.
“I felt that it was
important to share the avenues by which my
Administration will comply with the use of the monies
provided under ARRA in a timely and efficient manner. As
well as detail, where possible, how these monies will be
properly expended within our community to provide the
impetus for economic stimulation in the Territory,” de Jongh
said. “I am very pleased with the presentation
that was given to the public at large as well as the
members of the 28th Legislature by my team.”
Related Documents:
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